TL;DR
- Russia drafts penalties for unlicensed crypto operations as part of a broader legal overhaul led by the central bank.
- Lawmakers and major banks call for faster legalization of digital asset transactions, including cross-border payments.
- Authorities aim to replace the experimental regime with a comprehensive licensing framework that defines liability for activity conducted outside the regulated sector.
Russia drafts penalties for unlicensed crypto operations while accelerating efforts to formalize its digital asset market. The initiative, backed by the country’s monetary authority, seeks to curb transactions conducted outside an approved regulatory perimeter and channel activity into licensed platforms.
Officials argue that clearer rules can reduce fraud and bring transparency to a sector that continues to operate in legal gray zones. The proposal comes as financial institutions increase pressure on lawmakers to finalize long-delayed legislation governing cryptocurrency trading and settlements.
Russia Drafts Penalties For Unlicensed Crypto Operations
The Central Bank of Russia has presented measures that introduce administrative and potentially criminal liability for crypto transactions carried out without authorization. Governor Elvira Nabiullina recently stated that fraudulent schemes often exploit informal crypto markets, leaving individuals exposed to banking restrictions and frozen accounts.
According to data shared during a financial cybersecurity forum, more than 1,800 individuals contacted authorities in recent months after being flagged for suspicious transfers linked to crypto sales. Regulators maintain that many of these cases involve proceeds tied to scams, placing sellers at legal risk even when they are unaware of the origin of funds.
Under the proposed framework, licensed operators would be required to comply with anti-money laundering standards and reporting obligations similar to those applied to traditional financial institutions.
Legalization Push Gains Support From Major Banks
At the same forum, executives from VTB Bank urged lawmakers to accelerate legalization. The bank’s leadership said corporate clients, including exporters, increasingly request crypto-based settlement options as Western sanctions restrict access to traditional payment rails.
Russia already allows limited digital asset use under an experimental regime focused on cross-border trade. In 2022 and 2023, policymakers debated whether to ban or regulate cryptocurrencies. Since 2024, the stance has shifted toward structured oversight rather than prohibition, reflecting the growing role of digital assets in international commerce.
Lawmakers in the State Duma have signaled that a comprehensive bill could move forward in the coming months, replacing temporary rules with a permanent legal structure.
In the near term, analysts expect stricter enforcement against offshore exchanges that operate without local authorization. For the domestic industry, however, the reform signals recognition that crypto activity is becoming embedded in Russia’s financial system.
